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Business Times
18-05-2025
- Business
- Business Times
Greenback rises to fourth straight weekly gain on latest US economic data
THE dollar strengthened on Friday (May 16) after the latest round of economic data showed a rebound in import prices while consumer sentiment remained subdued as tariff worries jumped, putting it on pace for a fourth straight weekly advance. The US Labor Department said import prices gained 0.1 per cent last month after dropping 0.4 per cent in March as a jump in the cost of capital goods outweighed cheaper energy prices. Economists polled by Reuters had forecast import prices, which exclude tariffs, would decrease 0.4 per cent. The dollar began to strengthen after a separate reading from the University of Michigan Surveys of Consumers showed its Consumer Sentiment Index dropped to 50.8 this month, below the 53.4 estimate, from a final reading of 52.2 in April. In addition, the 12-month inflation expectations of consumers shot up to 7.3 per cent, the highest level since November 1981, from 6.5 per cent. The greenback began last week with a surge of more than 1 per cent on Monday after the United States and China announced a 90-day pause on most of the tariffs imposed on each other's goods since early April, easing fears of a global recession, but had been trending lower throughout the week in part due to tepid economic data. 'There's all this data, but the headlines are taking over,' said Juan Perez, director of trading at Monex USA in Washington. 'The issue with (trade) developments is that they're just happening a whole lot faster, and the ongoing, never-ending lack of guidance for the future continues. Meanwhile, we're looking at data that is not truly reflecting all of the anxiety that we've really been living through.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The dollar index, which measures the greenback against a basket of currencies, rose 0.36 per cent to 101.13, with the euro down 0.37 per cent at US$1.1146. The greenback is up about 0.7 per cent on the week, which would mark its biggest weekly gain in about two-and-a-half months, while the euro is down 0.9 per cent on the week, and on track for its biggest weekly decline since early February. The greenback is still down nearly 3 per cent since Apr 2, when US President Donald Trump announced his spate of tariffs on countries around the globe. 'The very idea that trade is not getting away from turbulence continues to affect the long-term faith in the dollar,' said Perez. Markets have dialled back expectations for rate cuts from the US Federal Reserve this year as a result of the signs of easing trade tensions, pricing in a 67.1 per cent chance for the first cut of at least 25 basis points at the central bank's September meeting, according to LSEG data. The prior view was for a likely cut in July. Recent comments from Fed officials have indicated the central bank needs more data to determine the impact of the tariff announcements on prices and the economy before adjusting policy. Against the Japanese yen, the dollar strengthened 0.16 per cent to 145.89. Japan's economy shrank for the first time in a year and at a faster pace than expected, data for the March quarter showed on Friday. The dollar was up 0.4 per cent last week against the yen. Japanese Finance Minister Katsunobu Kato said he would seek to discuss foreign exchange issues with US Treasury Secretary Scott Bessent on the understanding that excessive currency volatility is undesirable, and hopes to meet with Bessent this week. REUTERS
Business Recorder
17-05-2025
- Business
- Business Recorder
US dollar climbs after data
NEW YORK: The dollar rose on Friday after the latest round of economic data showed a jump in import prices while consumer sentiment remained subdued, putting it on pace for a fourth straight weekly advance. The Labor Department said import prices gained 0.1% last month after dropping 0.4% in March as a jump in the cost of capital goods outweighed cheaper energy prices. Economists polled by Reuters had forecast import prices, which exclude tariffs, would decrease 0.4%. The dollar began to strengthen after a separate reading from the University of Michigan Surveys of Consumers showed its Consumer Sentiment Index dropped to 50.8 this month, below the 53.4 estimate, from a final reading of 52.2 in April. In addition, the 12-month inflation expectations of consumers shot up to 7.3% from 6.5%. The greenback began the week with a surge of more than 1% on Monday after the United States and China announced a 90-day pause on most of the tariffs imposed on each other's goods since early April, easing fears of a global recession, but has trended lower since in part due to tepid economic data. 'There's all this data, but the headlines are taking over,' said Juan Perez, director of trading at Monex USA in Washington. 'The issue with (trade) developments is that they're just happening a whole lot faster, and the ongoing, never-ending lack of guidance for the future continues. Meanwhile, we're looking at data that is not truly reflecting all of the anxiety that we've really been living through.' The dollar index, which measures the greenback against a basket of currencies, rose 0.31% to 101.08, with the euro down 0.26% at $1.1158. The greenback is up about 0.7% on the week, which would mark its biggest weekly gain in about 2-1/2 months, while the euro is down 0.8% on the week, and on track for its biggest weekly decline since early February. The greenback is still down nearly 3% since April 2, when US President Donald Trump announced his spate of tariffs on countries around the globe. 'The very idea that trade is not getting away from turbulence continues to affect the long-term faith in the dollar,' said Perez. Markets have dialed back expectations for rate cuts from the US Federal Reserve this year as a result of the signs of easing trade tensions, pricing in a 65.9% chance for the first cut of at least 25 basis points (bps) at the central bank's September meeting, according to LSEG data. The prior view was for a likely cut in July. Against the Japanese yen, the dollar strengthened 0.24% to 146.02. Japan's economy shrank for the first time in a year and at a faster pace than expected, data for the March quarter showed on Friday. The dollar is up 0.4% for the week against the yen. Japanese Finance Minister Katsunobu Kato said he would seek to discuss foreign exchange issues with US Treasury Secretary Scott Bessent on the understanding that excessive currency volatility is undesirable and hopes to meet with Bessent next week. Sterling weakened 0.31% to $1.3256 and is down 0.4% on the week.
Time of India
16-05-2025
- Business
- Time of India
US dollar climbs after data, on track for fourth straight weekly gain
The dollar rose on Friday after the latest round of economic data showed a jump in import prices while consumer sentiment remained subdued, putting it on pace for a fourth straight weekly advance. The Labor Department said import prices gained 0.1% last month after dropping 0.4% in March as a jump in the cost of capital goods outweighed cheaper energy prices. Economists polled by Reuters had forecast import prices, which exclude tariffs, would decrease 0.4%. The dollar began to strengthen after a separate reading from the University of Michigan Surveys of Consumers showed its Consumer Sentiment Index dropped to 50.8 this month, below the 53.4 estimate, from a final reading of 52.2 in April. In addition, the 12-month inflation expectations of consumers shot up to 7.3% from 6.5%. The greenback began the week with a surge of more than 1% on Monday after the United States and China announced a 90-day pause on most of the tariffs imposed on each other's goods since early April, easing fears of a global recession, but has trended lower since in part due to tepid economic data. "There's all this data, but the headlines are taking over," said Juan Perez, director of trading at Monex USA in Washington. "The issue with (trade) developments is that they're just happening a whole lot faster, and the ongoing, never-ending lack of guidance for the future continues. Meanwhile, we're looking at data that is not truly reflecting all of the anxiety that we've really been living through." The dollar index , which measures the greenback against a basket of currencies, rose 0.31% to 101.08, with the euro down 0.26% at $1.1158. The greenback is up about 0.7% on the week, which would mark its biggest weekly gain in about 2-1/2 months, while the euro is down 0.8% on the week, and on track for its biggest weekly decline since early February. The greenback is still down nearly 3% since April 2, when U.S. President Donald Trump announced his spate of tariffs on countries around the globe. "The very idea that trade is not getting away from turbulence continues to affect the long-term faith in the dollar," said Perez. Markets have dialed back expectations for rate cuts from the U.S. Federal Reserve this year as a result of the signs of easing trade tensions, pricing in a 65.9% chance for the first cut of at least 25 basis points (bps) at the central bank's September meeting, according to LSEG data. The prior view was for a likely cut in July. Against the Japanese yen, the dollar strengthened 0.24% to 146.02. Japan's economy shrank for the first time in a year and at a faster pace than expected, data for the March quarter showed on Friday. The dollar is up 0.4% for the week against the yen. Japanese Finance Minister Katsunobu Kato said he would seek to discuss foreign exchange issues with U.S. Treasury Secretary Scott Bessent on the understanding that excessive currency volatility is undesirable and hopes to meet with Bessent next week. Sterling weakened 0.31% to $1.3256 and is down 0.4% on the week. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Jesus' Tomb Is Opened And Scientists Find Something Unbelievable Car Novels
Yahoo
17-03-2025
- Business
- Yahoo
EM Currencies Get Boost From Signs of US Economic Slowdown
(Bloomberg) -- Emerging market currencies are rising on Monday, after disappointing retail sales data in the US weighed on the outlook for the world's largest economy. ICE Eyes Massive California Tent Facility Amid Space Constraints How Britain's Most Bike-Friendly New Town Got Built Washington, DC, Region Braces for 'Devastating' Cuts from Congress The Dark Prophet of Car-Clogged Cities Saving the Signature Sound of Washington, DC US retail sales rose by less than forecast in February and the prior month was revised lower to mark the biggest drop since July 2021. Together with other recent reports, the data bolstered the case for the Federal Reserve to cut rates more aggressively than expected in the months ahead, lifting the currencies of developing countries while bruising the dollar. A gauge of emerging market currencies was recently up 0.2%, while the US dollar retreated to its lowest levels in four months on an intraday basis. 'It's a respite from the pessimism seen last week,' said Juan Perez, director of trading at Monex USA. 'A few weeks ago, markets seemed convinced that no cuts would be required by the Federal Reserve, and now the bets have increased because the chances of a recession are also on the minds of every investor and economist.' Some Latin American currencies received an additional boost as commodity prices rose following China's pledge to enact measures that would stimulate domestic consumption. The news also supported emerging market stocks, which have climbed nearly 3% in March, on track for the largest advance in six months. After a rally fueled by excitement over homegrown artificial intelligence startup DeepSeek, investors have focused on China's plans to revive consumption. Nascent signs suggest domestic demand is picking up, with retail sales and industrial output rising faster-than-expected for the January-February period. The latest efforts reinforce China's priority to boost consumption 'could help to broaden out the momentum we have seen in China stocks this year, primarily led by tech,' said Charu Chanana, chief investment strategist at Saxo Markets. 'An improving earnings outlook could see broader participation from consumer, travel and health-care names,' she added. Chinese shares have largely shrugged off the raft of economic data published Monday, though sentiment in the broader emerging market space has improved amid views that President Donald Trump's tariff may not be as severe as initially expected. A slump in the greenback in March also bolstered emerging-market stocks and currencies, with the MSCI EM currency index rising by 1% this month, the largest monthly gain since September. 'We have seen an unexpected fiscal stimulus in Europe that affects military, infrastructure and even the green economy,' said Luis Estrada, a strategist at RBC Capital Markets. 'The surprise effect has shifted investments out of USD and into Europe. This has moved the DXY and pulled investments to rebalance by reducing USD exposure and adding global exposure including emerging markets.' Laggards in credit markets were led by Kenya, after Kenyan authorities and International Monetary Fund officials 'reached an understanding' not to proceed with the ninth and final review of its $3.6 billion program. By contrast, Panama dollar bonds were the best performers in emerging markets on Monday after First Quantum Minerals told lawyers to suspend its arbitration cases against the country. --With assistance from Ravil Shirodkar. The Real Reason Trump Is Pushing 'Buy American' Nvidia Looks Past DeepSeek and Tariffs for AI's Next Chapter How America Got Hooked on H Mart How Trump's 'No Tax on Tips' Could Backfire for the Working Class Snap CEO Evan Spiegel Bets Meta Can't Copy High-Tech Glasses ©2025 Bloomberg L.P. Sign in to access your portfolio
